Texas Financial Regulator C&Ds 3 Alleged Crypto Scammers For “Coins Miner” Acting as Coinbase
Texas State Securities Board Takes Action Against 3 Alleged Scammers Including Fake Coinbase Partner
The Texas State Securities Board has decided to take an emergency action against crypto investment companies in the state. The board claims that they are attempting to fraud local investors. The commissioner of the board, Travis J. Iles, entered an emergency cease and desist order against Coins Miner Investment Ltd, a crypto investment promoter based in Russia.
This company was allegedly pretending to be a representative of Coinbase, the biggest crypto exchange in the United States. According to the cease and desist order, the firm has been sending fake promotions as if they were sent by Coinbase when, in fact, they were sent from Russia.
Texas’ watchdog also affirms that the company uses images and video to mislead the residents and that Coins Miner affirmed that Ana Julia Lara, a person from the company, met with the president of Ripple, which is also not true. The image, in fact, was a generic image of another meeting, this time with the vice president of the CoinTelegraph Media Group.
This Lara person also falsely claims that it works at Coinbase, which the company has denied.
Reports seem to indicate that Ana Julia Lara does not even exist and used fake photos to create an identity to fool investors.
Aside from all this, the company claims that it is based in the United Kingdom while the truth is that it is based in Volgograd, Russia. The company has sent many unsolicited emails to people in Texas and has lured them into investing in crypto mining programs promoted by the company.
The allegations go even further and state that Coins Miner has used a video of a Fortune journalist discussing about cryptos with a superimposed Coins Miner logo, neither the journalist nor Fortune have authorized the use of the video, which was initially created during the crypto coverage of the company.
Other allegations include that Coins Miner is offering securities when the company is fully unregistered for their sale in Texas and this would violate laws from the Section 12 of the Securities Act.
Two Order Cease and Desist Orders
Not only Coins Miner received a cease and desist order at the time. The Texas regulator is also targeting DigitalBank (DGBK) and Ultimate Assets.
The first company, DGBK, is looking for funds to create a “hack-proof” wallet for cryptocurrencies. The bank is offering equities for the people who help it to gather the funds and it claims that the investors will receive an investment of up to 1,900% after the Initial Coin Offering (ICO) happens next year.
Another allegation is that the company used a video of Barack Obama, filmed in 2016, in which the former president talks about technological advances that will enable fully hack-proof devices one day. The company tries to use the video to link it to the current work of the company stating that “Obama in 2016 already understood about the company”.
Also, DGBK is offering unregulated securities in the state, which is also a crime. Ranca Romic, the director of the bank, affirmed that the company is only a software development company and that they will legally arrange the ICO in the future. Both of the sites of the company are offline since this Tuesday.
The last cease and desist action was sent to Ultimate Assets, which claims to be located in Arlington, Massachusetts, and it is offering forex and crypto trading options. The regulator described the company as a phantom entity, though, because there are no corporate records of any Ultimate Assets in Massachusetts.
This company has also promised that an investment of $1,000 USD would yield a return of $10,000 USD in about three weeks, too, which is not believed to be the truth. None of these companies responded officially to the others.